Micron (MU.US) received a positive outlook from Citigroup before its performance report: the increase in storage chip prices is beneficial for the company's performance, and the target price is raised to $430.

Citigroup maintains a "buy" rating on Micron Technology, Inc. (MU.US) and has raised the stock's target price from $385 to $430 ahead of the company's quarterly earnings announcement, citing surging memory prices and strong demand for artificial intelligence. Memory chip maker Micron Technology, Inc. is expected to announce its second quarter earnings on March 18. The analyst team led by Atif Malik stated, "We have raised our earnings expectations for the February quarter/April quarter, exceeding market expectations, primarily due to the recent strength in memory prices." Citigroup global memory analyst Peter Lee expects that driven by strong data center demand, the average selling price of DRAM will increase by 171% year-on-year in 2026; driven by strong demand for eSSD, the average selling price of NAND flash memory will increase by 127% year-on-year. In addition, media reports indicate that Samsung will increase DRAM prices by 100% quarter-on-quarter in the first quarter. Analysts pointed out that the main point of contention for investors in this stock is whether we are in an extended memory cycle similar to the 1990s Windows PC DRAM cycle, due to strong AI demand and limited new wafer fab capacity. Malik and his team stated that they have analyzed Micron Technology, Inc.'s stock performance in comparison to average DRAM selling prices in previous memory cycles and believe that the stock is poised to continue rising this year. However, analysts added that due to the over 100% quarter-on-quarter increase in DRAM prices in the first quarter, Micron Technology, Inc.'s excess returns in the second quarter may slow down. Additionally, Susquehanna has raised Micron's target price from $345 to $525 while maintaining a "positive" rating.